A company that provides sales tax automation for online merchants and marketplace sellers has received $600,000 in funding from angel investors. Among those participating in the seed round are Magento cofounder and COO Roy Rubin and Facebook Vice President of Partnerships Dan Rose, as well as executives from eBay, Intuit and ShipWire.
TaxJar said it would use the funds to “further develop the company’s efforts in customer acquisition and product development.”
TaxJar provides a cloud-based solution for online sellers who use Amazon, eBay, Etsy, Shopify, PayPal and BigCommerce. “The reaction TaxJar is getting to its services is exceeding what we expected at this stage,” said Mark Faggiano, CEO and co-founder of TaxJar. “We’re solving what is perhaps the biggest administrative and compliance burden for small businesses – the headaches of sales tax.”
TaxJar said it will also use the funding to prioritize and implement a number of product features, all driven by customer feedback. The features are expected to include a tax rate lookup service, sales tax return e-filing, and new data sources that support additional online sellers.